Supply Chain Management - Nike & Adidas

4205 WordsSep 19th, 200817 Pages

1. INTRODUCTION
Supply management is a complex function that’s critical to business success, responsible for delivering efficient costs, high quality, fast delivery and continuous innovation throughout companies’ entire supply chains. The strategic contribution of supply management is measured not only in savings made, but also in increased shareholder value (Niezen, Weller & Deringer, 2007). Nike and Adidas are two global companies try to improve their competitive advantage through strategically managing and utilizing their supply chain. The purpose of this report is to compare and evaluate the supply chain management practices of Nike & Adidas.

Yantian currently handles about 20% of Nikes volume from China, and approximately 10% is shipped from the port of Qingdao (Field, 2003a). The Yantian port has increased efficiency due to the close proximity to the Nike factory base, and quicker transits to the States (Field, 2003a).
Nike places more importance on choosing the right local partners, not just the right ports. Nike doesn’t own any of its facilities, and local partners make important logistics decisions (Field, 2003a). To manage relationships, Nike has both a global and regional vendor management team – as output volume increases, Nike don’t expand the number of suppliers, but increase the volume of business they do with each supplier (Field, 2003a).
The Nike production system can be stratified into three classes; developed partners, volume producers and developing sources (Donaghu & Barff, 1990). Although Nike has developed different levels of supplier relationships with each class the production network is commonly classified as a ‘virtual enterprise’ where independent firms work together based on shared values and a common way of doing business to exploit a business opportunity through joint manufacturing (Pfohl & Buse, 2000).

4.1.2 Adidas Approach
Adidas has also been referred to as a ‘virtual enterprise’ however, it may be better characterized as a ‘strategic network’ because its

Supply Chain Management
Supply Chain Management (SCM) is a systematic integration of suppliers, Original Equipment Manufacturer (OEM), distributors and customers in order to produce and distribute the right quantities, to the right time, and at the cheaper cost, while satisfying the entire supply chain partners (Balsubramanium & Roosebelt). In simple words, it is a process of moving goods from manufacturers to a consumer. Today successful companies, uses softwares or web based application service…

because it provided
value to its customers.
True
2.
Marketing is an activity that only large firms with specialized departments can use.
True
3.
False
The group of firms that makes and delivers a given set of goods and services is known as a supply chain.
True
9.
False
The goals of marketing promotion are youth, style, and sex appeal.
True
8.
False
Thoughts, opinions, and philosophies fit the concepts of neither goods nor services, and they cannot really
be marketed.
True
7.
False
The…

Topic: Do the terms, ‘logistics management’ and ‘supply chain management’ have the same meaning in operations and why logistics management might be of strategic importance to a manufacturing or service organisation.
During last two decades, the importance of logistics has been noticed around the world. In global markets, the effects and further developments of logistics and supply chain management for corporate success has increased significantly that result in a large amount of companies have…

Supply Chain Management
Organizations always seek to have an efficient system of running operations. If operations are running smoothly, an organization can cut costs and increase its profitability. Since there are so many organizations offering the same goods or services, competition becomes very fierce. For an organization that wants to stay ahead of competition, efficiency in the supply chain is no longer an option but a priority. Each organization must therefore device techniques of streamlining…

Nike Supply Chain Management
Nike is one of the world’s largest athletic shoes and Apparel Company based on USA, including footwear, apparel, equipment, accessories, and services. The company was found at January 25, 1964 and they change its name to NIKE on May 30, 1971. Nike has brand basket and market them, such as NIKE+, Air Jordan, Hurley International, Converse and etc. Nike’s supply chain is plenary because they control the add-value part by itself and outsourced those labor-intensive part…